Devon Energy's (NYSE: DVN) dividend continued its downward trajectory in the second quarter. The oil producer recently declared a $0.49 per-share fixed-plus-variable dividend. That's 32% below the prior quarter's level and a whopping 68% below its peak in the year-ago period. The culprit is lower oil prices, which have weighed on Devon's free cash flow.

However, crude prices have quietly rallied in the third quarter. They've recently rebounded past $80 a barrel (and could have further to run). Because of that, Devon's oil-fueled dividend could bounce back quickly.

Devon Energy recently reported its second-quarter results. The oil company delivered a strong operational quarter. The highlight was an 8% year-over-year increase in its oil production, which averaged a record 323,000 barrels per day (BPD).

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Source Fool.com